Cirata 'developing momentum' as turnaround plan takes shape
() , an AI-led data analytics company, updated markets on trading for the quarter ended September 30, 2023.
Cirata said trading was in line with management's expectations, with $1.7m in bookings for the period, reflecting a return to normal trading following disruptions in the first half of the year. Cirata's outlook for H2 bookings performance, ranging from $4.3m to $6.0m, and a year-end cash balance of $16.0m to $16.5m, remains unchanged.
Q3 2023 bookings were primarily driven by Application Lifecycle Management (ALM) software, accounting for 67% of total bookings, while Data Migration (DM) software contributed 33%. Notably, three new contracts were secured during the quarter, including previously announced deals with General Motors and FordDirect.
The company's recovery and execution of its turnaround plan have shown early progress, with a focus on improving go-to-market strategies. Cirata resumed normal operations in Q3 after a period of shares suspension in July, maintaining engagement with customers and partners as per management expectations.
Looking forward, Cirata is confident in the robustness and quality of its pipeline, targeting growth in 2024 in alignment with its turnaround plan, with a goal of achieving cashflow breakeven by 2025.
Stephen Kelly, CEO, commented: "Our turnaround plan is developing momentum, and our collective focus now is squarely on growth and tracking towards cash-flow breakeven. We are pleased with the level of engagement with both our partners and customers. It has been a period of "root and branch" positive changes with a new Board, new Management Team and new Company name and brand. These are early days in the Company's transition and although we can see the green shoots of progress as evidenced by recent contract announcements, we realize that our future success relies on a continued relentless focus on growth and execution."
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Cirata, which changed its name from WANdisco earlier this month, is beginning to reap the rewards of its turnaround plan, with new contracts and contract renewals underscoring its value offering to customers.
Cirata’s services help its customers harness AI and analytics throughout their entire data infrastructure. This enables them to freely select analytics technologies without being tied to specific vendors, platforms, or cloud providers, making AI and analytics more cost-effective and adaptable.
Post-period, Cirata has already seen a number of contract renewals, including NatWest extending its contract to 3 years, with a total value of $320k. Shortly after, the Health Care Service Corporation renewed its existing contract for Cirata's Fusion product for 12 months, with the total consideration for the term being $983k.
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